Some traders are using 5% rule. 5% rule means that you can risk only 5% of your trading capital on any single trade.
For example, when your trading account is 1000$, than you can risk 50$ on any single trade. If you follow this rule you can avoid big losses.
For example, when your trading account is 1000$, than you can risk 50$ on any single trade. If you follow this rule you can avoid big losses.
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